Symbotic Inc. (SYM) Q4 2024 Earnings Summary

Executive Summary

• Q4 FY2024 revenue was $577M with net income of $28M and adjusted EBITDA of $55M; gross margin rebounded to 18.8% (19.6% adjusted), marking the first GAAP net income quarter as a public company .
• Sequential acceleration in deployments drove records: 9 system starts, 4 completions, 44 systems in deployment, and 25 operational systems; backlog remained ~$22.4B .
• Management guided Q1 FY2025 revenue to $495–$515M and adjusted EBITDA to $27–$31M, expecting “stable gross margins” and increased OpEx from targeted investments .
• Subsequent Nov 27 update disclosed revenue recognition errors and lowered Q1 FY2025 guidance to $480–$500M and adjusted EBITDA to $12–$16; Symbotic indicated its Nov 18 Q4 results should no longer be relied upon pending restatements .
• Stock reaction catalyst: on Nov 27, shares fell 36% to $24 on restatement news and guidance cut .

What Went Well and What Went Wrong

What Went Well

• Gross margin returned to historical levels at 18.8% (adjusted 19.6%) as deployment schedules improved; CFO: “we quickly returned to those historical gross margins” .
• Record execution KPIs: “record number of system deployments,” 9 starts and 4 completions; CEO: “system starts also reaccelerated to a record level” .
• Strategic expansion: new customer Walmex adds ~$400M for two large greenfield sites and opens lower-cost geographies; “Walmart Mexico will add about $400 million to the backlog” .

What Went Wrong

• Q3 margin pressure from elongated construction schedules and retrofit costs lingered; CFO detailed labor inefficiencies and EPC issues prompting insourcing plans .
• Operations services posted slight negative gross margin due to added resources at large projects; management expects a return to modest profitability as the year progresses .
• Post-quarter restatement: identified errors in system revenue recognition and material weaknesses in ICFR; estimated $30–$40M reduction to FY2024 system revenue, gross profit, and adjusted EBITDA vs. Nov 18 release and lowered Q1 FY2025 guidance .

Financial Results

Segment revenue breakdown ($USD Thousands):

KPIs and operating metrics:

Notes:

• SYM disclosed that Nov 18 Q4 figures would be subject to restatement; preliminary estimate reduces FY2024 system revenue/gross profit/adjusted EBITDA by $30–$40M vs. Nov 18 release .

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• CEO: “We had a strong finish to the year, delivering on our commitment to quickly return to high growth and historical gross margin levels… System starts also reaccelerated to a record level” .
• CFO: “Fourth quarter revenue grew $577 million… we began 9 new system deployments and completed 4 systems… our first quarter of net income as a public company” .
• CFO on margins: “Our gross margin this quarter hit 19.6%, which was a rebound back to historical levels… we continue to improve schedule and costs and expand those gross margins throughout the year” .
• CFO on Walmex: “Walmart Mexico will add about $400 million to the backlog… two first sites… much larger and greenfield” .

Q&A Highlights

• Margins and trajectory: Q4 adjusted gross margin rebounded to 19.6%; Q1 FY2025 guide expects “stable” gross margins and improvement in 2H FY2025 as schedules and costs improve .
• Walmex scope: Two large greenfield sites add ~$400M to backlog; potential for broader rollout across thousands of stores over time; not part of the U.S. Walmart contract geometry .
• EPC insourcing: Symbotic phasing EPC back in-house to control final-mile installation costs/schedules; OpEx uptick primarily R&D and SG&A, EPC costs flow through COGS .
• Steel costs/tariffs: Pass-through clauses protect gross profit dollars; margins may be nominally impacted; proactive pricing lock-ins .
• GreenBox update: Second GreenBox installation underway in Georgia (~$150M facility cost includes non-Symbotic infrastructure); multi-tenant strategy with 35% JV ownership economics for SYM .

Estimates Context

• Wall Street consensus (S&P Global) for Q4 FY2024 EPS and revenue was unavailable due to provider limits at the time of retrieval; therefore, no beat/miss vs. consensus is shown. Values would have been retrieved from S&P Global if available.

Key Takeaways for Investors

• Q4 FY2024 print was strong operationally with revenue well above prior guidance and margins returning to historical levels; the deployment engine is scaling with record starts and completions .
• The Nov 27 restatement and guidance cut are a near-term overhang; expect estimate/model resets and heightened focus on ICFR remediation and revenue recognition controls .
• Geographic expansion via Walmex validates ROI in lower-cost markets and diversifies growth vectors beyond U.S. retail; backlog durability remains high with announced additions .
• EPC insourcing and schedule discipline are key to sustaining margin recovery; watch execution on commissioning hours and the cost curve through FY2025 .
• GreenBox’s multi-tenant model could open incremental demand and recurring revenue pathways; early sites (CA, GA) serve as proof points .
• Near-term trading: volatility likely tied to restatement remediation updates and Q1 FY2025 delivery vs. lowered guide; positive catalysts include additional customer wins and stable margins .
• Medium-term: thesis hinges on backlog conversion, recurring revenue scale (software/operations), and product innovation (vision/BreakPack/non-ambient); monitor hiring, R&D cadence, and international pipeline .